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Bba108 business environment
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DRIVE SPRING 2017
PROGRAM BBA
SEMESTER I
SUBJECT CODE & NAME
BBA108-BUSINESS ENVIRONMENT
Set 1
1 Explain the different instruments of Monetary Policies?
General or quantitative controls
Selective or qualitative controls
Answer: Instruments of monetary policy
There are various methods and instruments which the Reserve Bank uses. Some
are general or quantitative methods which control and adjust the total quantity or
size or volume of deposits created by the commercial banks. There are others
known as selective or qualitative controls as they control certain types of credits.
The former controls the volume (stock) of money and credit, while the latter
controls the availability (flow) of money and credit.
General or quantitative controls
These are the controls that relate to the volume and cost of bank credit in general
without regard to the particular economic activity for which the credit is used.
There are three instruments in this
2 Discuss the merits and demerits of Mixed economy.
Merits
Demerits
Answer: Merits of a mixed economy
a) Economic and political freedom
It provides enough scope for private enterprise. Freedom of choice of occupation
exists. People are free to save and invest. Consumers are free to choose the goods
2. and services they want to consume. A mixed economy provides adequate civil,
political, and economic freedom to the people, subject
3 Write a note on the three pillars of free economy namely liberalization,
privatization and globalization.
Liberalization
Privatization
Globalization
Answer: An ideal free and open economy is based on three principles which are
as follows:
Liberalization: The process of liberating the economy from governmental
regulations and control is known as Liberalization. This results in greater freedom
for private enterprise that leads to
Set 2
1 Explain positive and negative effects of New Economic Policy?
Positive Effects
Negative Effects
Answer: Positive effects of New Economic Policy
Economic activities have picked up and the growth rate of GDP has shown an
impressive increase.
Stimulated increase in industrial production.
Significant increase in government revenues and subsequent reduction in fiscal
deficit.
Greater flow of
2 Differentiate GATT and WTO.
Explain GATT
Explain WTO
Answer: Members of all the trading blocs and agreements are also part of the
World Trade Organization, more popularly known as WTO. WTO is now the only
globally recognized trade organization that deals with the rules of trade between
nations. It administers the rule of law in international trade. It came into existence
on January1, 1995, which took the place of GATT (General
3 Write short notes on the following:
a. Functional co-operatives
3. b. Multipurpose co-operatives
Functional co-operatives
Multipurpose co-operatives
Answer: Co-operative Sector has a very important role in the development of
many other sectors. The Co-operative sector includes agriculture, retail
distribution, housing, rural and small scale industry etc.
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